PROMISSORY NOTES
If a tenant requests payment arrangements due to hardship prior to the first of the month in which rent is due, any late fees/charges will be treated on a pro-rated/percentage basis. An example: a tenant rents an apartment that they pay $600 a month for. Late fees are $50. The tenant’s hours were cut/ kids got sick/etc … they can afford to pay $300 by the first of the month when rent is due, and will able to get the rest soon, but after they’d be charged the late fee.
By coming forward and discussing their situation, paying the $300 that they DID have on the first of the month and signing a promissory note for the rest (promising that they’d get it to us by a specific time), the tenant cut their late fee in half (since they paid half – 300 of 600 – of their rent, they were only charged half of their late fee - $25).
So.
There you have the benefits.
The Rules:
~Arrangements must be made prior to the first of the month in which rent is due.
~Late charges/fees are in proportion to outstanding balances only.
~Promissory note payments MUST be made via money order or cash.
NO CHECKS.
~Payments MUST be made in person (not mailed in).
~If payment schedule is not honored for any reason, all late charges/fees will be due in full.
By coming forward and discussing their situation, paying the $300 that they DID have on the first of the month and signing a promissory note for the rest (promising that they’d get it to us by a specific time), the tenant cut their late fee in half (since they paid half – 300 of 600 – of their rent, they were only charged half of their late fee - $25).
So.
There you have the benefits.
The Rules:
~Arrangements must be made prior to the first of the month in which rent is due.
~Late charges/fees are in proportion to outstanding balances only.
~Promissory note payments MUST be made via money order or cash.
NO CHECKS.
~Payments MUST be made in person (not mailed in).
~If payment schedule is not honored for any reason, all late charges/fees will be due in full.
